What is Inventory Finance?

How does Commercial Inventory Finance differ from other inventory finance plans and banks?

We believe our finance plan to be more flexible, efficient, cheaper and less intrusive than most other financiers. Here are some of our features and benefits:
• No real estate security required
• Revolving line of credit of between $50,000 to $200,000
• After an initial $250 application fee (and 0.04% stamp duty in NSW only), there are no other fees to pay. This fee and stamp duty is only payable upon approval
• You can draw your funds to cover the purchase of your goods by simply sending us an email requesting us to transfer funds into your nominated bank account or we can pay your supplier direct if you prefer. The only documentation we would require is proof of purchase of goods being financed by way of a supplier’s invoice or receipt
• Your monthly repayments are as low as just the interest only amount. You have the option to pay more if you like and you can do this by just transferring funds into our bank account and using your CIF account number as a reference. The funds will be allocated to your CIF account as soon as they arrive into our bank account meaning you will save interest charges on this amount immediately
• You can draw and repay funds into your CIF account as many times as you like at no extra cost to you
• There is a zero charge on the unused amount of your facility. For example, if you have a $100,000 credit limit and you only draw $20,000, you pay nothing for the unused $80,000 portion

What security is required to obtain this facility?

As mentioned above, we view this as a business loan and as such, we do not seek real estate security. After all, the equity in your property is a valuable commodity that you may not want to tie up for your business. Our security requirements are a signed borrowers finance agreement, personal guarantees from the directors/shareholders and a first charge over the company assets by way of a General Security Agreement.

What are the minimum repayments for this facility?

The minimum repayments are just interest only which is paid once a month and is calculated on your daily balance. As an example, a loan balance of $20,000 for an entire month would cost you just $317 on average.

What do you require for an application?

We would require a completed application form from each director (click here) and your profit & loss and balance sheet for the last 2 fiscal years. Depending on the timing of your application, we may also require your interim profit & loss for the most recent quarter. Finally, we will also require a copy of the director/s driver’s licence which is a legal requirement. When we have all of this information, we will be in a position to give you a response within 5 days.

What ongoing information will you require?

Unlike banks and some other finance companies who may require monthly business figures, sales projections and applications whenever you wish to draw funds, we only ask for your financial statements just twice a year. Your facility is approved for 3 years so this is all you need to provide during this period. If after 3 years you wish to keep this facility going, we would simply re-assess your application and if all is satisfactory, we can extend this for a further 3 years.